Transaction includes processing facility and multiyear agreement to supply pork raw materials to Hormel.

Krissa Welshans 1, Feedstuffs Editor

August 16, 2018

2 Min Read
Hormel Foods sells Nebraska processing plant to WholeStone Farms

Hormel Foods Corp. announced today that it has entered into a definitive agreement to sell its Fremont, Neb., processing facility to WholeStone Farms LLC. The transaction is subject to customary closing conditions and is expected to be completed in December 2018.

"The Fremont facility has been an important part of our company for decades, and we are certainly pleased to have found a home for this team and facility with WholeStone Farms," said Jim Snee, chairman of the board, president and chief executive officer of Hormel. "The strategic decision to transition the Fremont facility to WholeStone Farms reflects the long-term, changing dynamics in the pork industry and, most importantly, is aligned with our vision as a global branded food company."

Glenn Leitch, executive vice president of supply chain at Hormel, said the company looks forward to working with WholeStone Farms to ensure a smooth transition for employees, suppliers and customers.

"A multiyear supply agreement with WholeStone Farms ensures the Fremont facility will continue as an integral part of our supply chain in the future,” Leitch said. “Our focus continues to be on ensuring a stronger supply chain from procurement to shipment of products, fully optimizing our system to create an efficient, enterprise-wide structure to keep pace with the growing needs of our business."

WholeStone Farms, established in 2017 to create and capture value in the pork supply chain, is owned by 220 independent producers and farmers who raise livestock and crops in the upper Midwest. Collectively, they farm nearly 400,000 acres of cropland and raise 12 million pigs a year.

Dr. Luke Minion, chairman of the WholeStone Farms board of directors, said the purchase of the plant aligns with the company’s vision to create and capture value in the pork supply chain for the members who own WholeStone Farms.

"We value the dedication and experience the existing team brings to WholeStone Farms and are committed to significant additional investments in the facility for production efficiencies and enhancing employee wellness," Minion said.

The transaction includes a processing facility and a multiyear agreement to supply pork raw materials to Hormel. The current Fremont plant management team and workforce will remain in place to ensure business continuity for all stakeholders.

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